Local News

Hot Topics:

Former AIS CFO gets prison time for embezzling more than $377K

Company vice-president said Karl Breeden cooked the books to hide embezzlement.

By RICK LEE Daily Record/Sunday News

Updated:
11/30/2012 09:58:49 PM EST

Karl Breeden

York, PA -

Convicted in August of embezzling more than $377,000, former Chief Financial Officer for Advanced Industrial Services Karl Breeden was sentenced to one day less than a year in York County Prison on Friday.

Breeden, 52, of the 2000 block of Parkton Lane, West Manchester Township, made no comment as he left the county Judicial Center. He remains free on $40,000 bail until his Dec. 14 prison reporting date.

A jury convicted Breeden of forgery, theft by deception, theft by unlawful taking and receiving stolen property. Defense attorney Suzanne Smith argued at trial that the company owed the money to Breeden through contractual obligations.

After Friday's sentencing, she repeated her belief that Breeden is innocent of the allegations and said she will discuss appeal issues with him.

Before sentencing, Jim Heinrichs, vice president, secretary and treasurer for AIS, called Breeden the "master of control within his financial world" and accused him of "cooking the books" to hide his thefts, which occurred over a number of years ending when he was fired in 2010 following a company audit.

Heinrichs said the embezzlement caused: the company to take a large financial hit; "the unnecessary layoffs of 51 employees"; more than $100,000 in legal fees; a reduction in the company's credit line; and the remortgaging of assets that were close to paid off.

Advertisement

Chief Deputy Prosecutor David Sunday asked Judge Michael E. Bortner to sentence Breeden to two to four years in state prison with 10 years of probation.

Breeden's daughter, Nicole Breeden, told Bortner that house arrest for her father would "be the ultimate punishment."

Her contention that house arrest would keep Breeden from biking, going to the beach, attending Penn State games and supporting her at a Penn State dance marathon, drew glares and grumbles from people sitting on the commonwealth's side of the courtroom.

It also drew Sunday's ire. Sunday told Bortner that Breeden made the decision he wanted to provide for his family "no matter who it hurt."

"Just because he has a privileged family doesn't mean he should be treated any differently," Sunday said.

Bortner sentenced Breeden to one year minus one day to two years minus two days and a concurrent 10 years probation. He said the exact restitution amount would be determined later.

He said work release would allow Breeden to meet his personal obligations "but more importantly for restitution to be made."

Christmas in prison

Defense attorney Suzanne Smith had complained about police when they arrested her client, Karl Breeden, for embezzlement on Christmas Eve 2010.

Her complaint had prompted then Northern Regional Sgt. Dave Steffen (now chief of Northern Lancaster County Regional Police Department), to remark, "As far as I know, there's nothing in the criminal procedures that prohibits someone from being arrested on Christmas Eve. We have the Miranda warning, but we don't have the Santa clause."

Friday, in the York County Judicial Center, after Breeden was sentenced to just shy of one to two years in county prison, Smith asked that his prison reporting date be postponed until after Christmas so he could spend the holidays with his family.

OUARZAZATE, Morocco (AP) — The people are restive, the priesthood is scheming and a fanatic band of insurgents known as the zealots are plotting assassinations — and now to make matters worse, the body of a condemned cult-leader known as Jesus has disappeared from the tomb, apparently following some ancient prophecy. Full Story